Want a Deal With ‘The Profit’? Marcus Lemonis Has Property to Sell
On CNBC’s “The Profit," Marcus Lemonis, the multimillionaire CEO of Camping World, tries to fix ailing small businesses by investing in them.
But not all goes as smoothly as he plans.
Lemonis is now selling a historic building in downtown Jacksonville, Florida, he bought five years ago to house one of his investments on his show: local candy maker Sweet Pete’s.
While Sweet Pete’s thrived after his investment, other businesses that went into the building didn’t, including a namesake restaurant.
Initially, the Shopping Center Group listed the 17,000-square-foot building at 400 N. Hogan St. in May for $2.9 million. The price later dropped by $200,000.
Hyrbridge, a commercial real estate firm in Tampa, recently took over the listing. The price started at $2.5 million, but now it is down to $1.95 million.
The building sits in the heart of Jacksonville’s downtown.
“While downtown Jacksonville has struggled in the past, the addition of almost 1,600 market-rate multifamily units since the last recession could be a boon for retail demand in the coming years,” said Trent Turner, CoStar’s Jacksonville market analyst. “New residents to the neighborhood, particularly those that are higher-income, means more consumer demand for restaurants and service-oriented retail.”
Moreover, the city has been pushing stronger redevelopment efforts, notably Jackson Landing, a large waterfront shopping and dining destination built in the late 1980s that is basically empty. The city now owns the property and is working on plans for its future.
“The city council also has approved millions of dollars in incentives to help lure companies and jump start developments in the downtown district,” Turner said.
Lemonis couldn’t be reached for comment on why he’s selling the property. But last year, he had to invest about $1 million in repairs. The building was constructed in 1903 to house the Seminole Club, a private social club that operated there until 1990.
Lemonis purchased the building not long after the 2014 episode featuring Sweet Pete's, during which he agreed to invest $750,000 in the business, $500,000 for the facility. Lemonis believed their previous location in a residential neighborhood inhibited the small company’s ability to grow. It also had a cramped kitchen.
In a CNBC follow-up to the show, Peter Behringer, who started the business with his wife Allison, said the business went from eight employees doing $400,000 in revenue to $2.5 million the next year with 110 employees. “That’s a result of us bringing Marcus on board, our partnership with him and what he’s been able to help us do,” he said.
After buying the building, Lemonis leased space to Candy Apple Café. But the business closed while the building was undergoing lengthy repairs.
Working with Roderick Smith, a locally known chef, Lemonis opened Marcus Lemonis Grill last October in the former café space. That closed May just before Lemonis listed the property for sale.
